I wanted to revisit VRNG, a speculative stock awaiting resolution of its huge lawsuit with GOOG. This update focuses on two issues that have changed. First, they reported Q4 and had a conference call last week. I came away with the impression that there is incredible talent here. It's still a very binary company - without a GOOG win it's not going to work. Still, in assessing how the stock might perform following resolution, I am more optimistic. Of course, this thing is like watching paint dry. I have no idea why it is taking so long for the judge to rule. The most important issue is the future royalties, which could be $500mm or more (not bad for a $200mm market cap or so). Of course, there are several other outstanding issues, but I am assuming that none of them are resolved favorably (the strange damages award that was too low, the laches ruling that shortened the infringement period).
The reason the stock is falling in my view is that in the absence of news that the market has been expecting, another patent troll, VHC, has been sliced in half. I haven't fully researched this one, but, besides the fact that they play on the same field, there is no relationship between the success or failure of VHC with its trials and the potential for VRNG.
So, I still like this one. It's been a laggard, and I hope I have it right to remain positive. I think that the stock could trade towards 5...
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